Honduras has a wide variety of coffees for every roastery. Whether you're looking for affordable commercial grades, lower-end specialty lots, or coffees with socio-environmental certifications (lots of organic options!), you can find it all here. And let's not forget the 85+ points micro-lots perfect for espresso, filter, and limited editions. But you must know that Honduras wasn't always known for high-quality coffee. The country used to be infamous for high-volume, low-quality, cheap coffee with poor drying practices leading to inconsistent cups full of defects. So, what changed?
History of coffee production in Honduras
While Honduras exports more coffee than any other country in Central America today, they only started back in 1889. By then, many of its neighbors already had more developed coffee sectors. Throughout the 20th century, most coffee farms in Honduras were bigger than 35 hectares, producing lower grades: Standard (STD) for farms below 900 m, and High Grown (HG) for those between 900 m and 1,300 m. Back then, smuggling coffee to Guatemala for better prices was a big issue.
Despite the inconsistent quality, coffee became more important in the 1950s when the government partnered with USAID to invest in processing infrastructure. This was followed by the creation of the Association of Honduran Coffee Producers (AHPROCAFE) in 1967 and the development of the Honduran Coffee Institute (IHCAFE) in 1970. The high prices of the 1970s led to a boom in coffee production and further investment in infrastructure.
Agrarian reform and the cooperative movement
The 1970s also saw changes in the farming sector. The Honduran government approved a second agrarian reform in 1975, aiming to integrate thousands of rural families into the economy and promote a cooperative system of production. Like other countries in Central America, the price crises of the 1990s and 2000s pushed larger farms to diversify, leaving coffee production in the hands of smallholders in higher altitudes.
When the second price crisis hit, coffee producers didn’t just sit back. They took to the streets to demand government support. This led to a national policy for the industry, moving coffee-related institutions and services from public to private or semi-private control. The government also passed a law to tax coffee production, creating a financial support fund, research, and extension services for farmers.
Around this time, Honduras created institutions to promote quality, like the National Center of Quality, the Coffee Quality Control Laboratory, and the School of Coffee Tasters. The first Cup of Excellence took place in 2004. The cooperative movement also grew, with hundreds of associations providing technical assistance, access to inputs, and financing. Many cooperatives stopped buying wet parchment and started buying cherries to better control processing.
Smallholders in high altitudes
Today, you'll find a very different coffee sector in Honduras. There are 120,000 families working in coffee, and 92% of the farms are small, below 3.5 hectares. Now, 60% of the coffee exported is Strictly High Grown (SHG), from farms above 1,200 m in altitude. More than half of all exports are specialty or certified coffee. The cooperative movement has grown, and they now handle exports themselves. COMSA, the first cooperative to try Algrano, is the 9th biggest exporter in the country.
Some might argue that the cooperative movement hasn’t fully delivered on its promise, as only 15% of farmers are associated with one. However, Honduras owes its place in the coffee world today to strong national policies, institutions, and the work done by cooperatives to differentiate production. Honduras is the origin that recovered best from the leaf rust outbreak of 2012-13, with production remaining high despite setbacks with diseases. Most farmers grow coffee under agroforestry systems, fertilize, and perform disease control at least three times a year.
Domestic market and direct sales
Direct access to the international market is still not the norm in Honduras. There are nearly 600 intermediaries registered in the country, and nearly 80% of the coffee is sold to them before it reaches exporters. Multinational companies like Olam, ECOM, and Volcafe are among the largest exporters and control a big chunk of the domestic market. That’s why Algrano only onboards single farms and cooperatives, who are the main providers of technical assistance and support to farmers.
The country’s transformation from a supplier of low-quality coffee to a producer of high-quality specialty coffees is truly impressive. With a strong cooperative network, government support, and a focus on innovation, Honduras is well-positioned to meet the demands of specialty coffee markets. Roasters can expect high-quality beans, a consistent supply, and a direct connection to dedicated producers.
